DESCRIPTION
Retail Leases: Restructurings, Subleases, and Insolvency
Commercial leases are complex financial documents. There are issues of tenant improvement allowances, how that money is spent by tenants to improve the property, and how the landlord recovers that allowance, in the form of rent, over the term of the lease. There are issues of “CAM,” common area maintenance expenses, that are allocated among tenants. There are issues of rent escalators provisions through the term of the lease. There may also be the fundamental issue of whether the lease is triple or double-net or gross, and what that means from lease to lease. All of these essential economic factors play a very important role in drafting commercial leases. This program will provide you with a practical guide to understanding the economics of commercial leases and the drafting issues they raise.
- Math of Leases: Essential Calculations to Understand Before Drafting Leases
- How certain financial metrics or calculations can cause substantial drafting errors
- Underlying economics of commercial lease provisions
- Rental start dates, lease years, and annual “elevator” clauses
- Measurement of usable space, load considerations, and re-measurement
- Intricacies of determining Common Area Maintenance expenses and proportionate shares
- Determining gross sales for percentage rent purposes
Speaker:
David C. Camp is a partner in the Denver office of Senn Visciano Canges, PC, where he represents clients in all aspects of real estate transactions. He has extensive experience in leasing, development, construction, financing and ownership issues. He also has substantial experience in commercial finance matters, most frequently corporate and real estate financing, including mezzanine loans, construction loans, and traditional loan matters.
Disclaimer: All views or opinions expressed by any presenter during the course of this CLE is that of the presenter alone and not an opinion of the Oklahoma Bar Association, the employers, or affiliates of the presenters unless specifically stated. Additionally, any materials, including the legal research, are the product of the individual contributor, not the Oklahoma Bar Association. The Oklahoma Bar Association makes no warranty, express or implied, relating to the accuracy or content of these materials.